Ashok Leyland is riding multiple tailwinds at once viz-a-viz a sharp uptick in exports led by the GCC, a strong domestic CV cycle driven by freight demand and fleet replacement and an expanding electric bus strategy that now includes a potential manufacturing footprint in Indonesia.

Speaking on the sidelines of the company’s Q3FY26 results announcement, Executive Chairman Dheeraj Hinduja and Chief Executive Officer Shenu Agarwal detailed how the company’s international operations, EV roadmap, new product launches and capex programme are aligning to position the CV maker for sustained growth into FY27.

Hinduja highlighted that exports have been extremely good this year with particularly strong traction from Saudi Arabia and the UAE.

“The Saudi market and the UAE market continue to be very strong. We have developed products that are very suitable for these economies and our Ras Al Khaimah plant is working nearly at full capacity,” he said.

The GCC markets are now a key growth engine within Ashok Leyland’s international portfolio and overall overseas operations are expected to close the year on a robust note. The near-full utilisation at the facility underlines not only demand strength but also the company’s increasing localisation and relevance in these markets.

Furthermore, a recent MOU with PT Pindad in Indonesia marks Ashok Leyland’s intent to deepen its presence in Southeast Asia. Hinduja noted that the agreement was signed only last week and is aimed at building a much larger footprint in a sizeable market.

“This opportunity allows us to not only focus on electric buses but also on defence products,” he said, indicating that the partnership has a wider scope than just EV mobility.

While still in early stages, the understanding is that the collaboration could evolve into local manufacturing of vehicles in Indonesia for the domestic market, strengthening Ashok Leyland’s ASEAN presence while aligning with local industrial priorities. “We see good opportunities going forward in the Indonesian market,” Hinduja added.

Promising Q1FY27

On the near-term outlook, Hinduja said the momentum seen from Q1 through Q3 has continued into Q4. “The current quarter is looking very good. We have seen steady growth from Q1, Q2 and Q3, and this current quarter is also looking very strong,” he said, citing CRISIL estimates that suggest the company could close the year with overall growth of 10–12 percent.

Looking ahead, while Q1 is traditionally softer for the industry, the company is seeing encouraging signs. “Generally, Q1 is slightly slower than the rest of the year but at the moment the indications of Q1 are also very good,” he noted.

This optimism is underpinned by what the company believes is not a temporary spike but the start of a sustained replacement-led demand cycle. Agarwal pointed to January’s industry data, where the MHCV segment grew around 27 percent and LCVs over 20 percent as evidence of structural demand.

“We do believe that this is not a short-term blip because of GST. This is a result of overall growth in the consumption economy, which is leading to higher freight demand and higher freight rates,” he said. India’s truck fleet age is currently at an all-time high and the improved freight environment appears to have triggered a long-awaited replacement cycle.

“If the industry was waiting for some kind of a trigger to start this new replacement cycle, we believe that has now happened, and therefore it will go for a longer run,” Agarwal said. A major part of Ashok Leyland’s MHCV strategy lies in the launch of Hippo and Taurus, developed over the past couple of years.

“These products truly represent best-in-class performance and reliability,” Agarwal said. Both trucks deliver peak torque of around 1,600 Nm, among the best in the category and use upgraded driveline aggregates to improve reliability in tough applications such as tippers.

On the tractor side, the focus is on improving turnaround time for customers through higher power and heavy-duty aggregates. “The whole range will be launched between now and April and thereafter we will use the full potential of these products,” he added.

EV demand rising

Despite reports of a slowdown in staff and school bus segments, Ashok Leyland says its order book remains strong across both conventional and electric buses. “Our bus order book is very healthy and very strong at the moment,” Hinduja said.

He noted that the new Lucknow greenfield plant, completed in a record 14 months, has come at the right time to support increased bus demand. The plant is primarily focused on EVs, with phase one capacity of 2,500 units, scalable to 5,000 units.

Agarwal attributed recent industry blips in bus growth to timing issues in STU orders rather than any fundamental demand weakness. “The sentiment is very, very positive even in the staff and school sectors,” he said. Agarwal emphasised that electrification will not be uniform across segments.

“Buses are seeing a huge spike in government purchases. We are very, very optimistic about the electric bus business,” he said. Switch, the company’s EV arm, is fully ready with products for India and overseas markets. A manufacturing base for EV buses is also being set up at the RAK plant, expected to be operational in about 12 months.

Electrification is also expected to gain traction in the 2–4 tonne and intermediate CV categories, where Ashok Leyland was among the first to launch electric offerings. While Ashok Leyland did not directly win tenders in the last 10,000-bus PM e-Bus Sewa round, Switch secured significant orders through an infrastructure partner. Both entities plan to participate in upcoming tenders.

The government’s plan to induct over 50,000 electric buses into STU fleets over the next four to five years is seen as a major opportunity. Switch has already exported EV buses to Mauritius and received an order for 45 buses from Bhutan, underlining its growing international footprint.

Market segments

The company acknowledged some commodity cost pressure in recent months, driven not by steel but by spikes in certain precious metals. This has pushed up Q3 material costs sequentially.

Hinduja expects this pressure to ease within three to four months. Meanwhile, the company is doubling down on efficiency, waste reduction and cost control. Ashok Leyland will close the year with capex of around INR 10–11 billion and plans to invest about INR 10 billion annually over the next two years towards its Centre of Excellence and factory projects.

Agarwal said the company has also consciously grown non-domestic CV businesses including industrial engines, power solutions, defence and spares to reduce dependence on domestic MHCV volumes. “This reduces our break-even point from MHCV domestic sales and gives a lot of strength to the company for future growth,” he said.

Despite being a late entrant in LCVs, Ashok Leyland now holds around 12 percent market share and insists it will not chase growth through discounting. “Our industry is basically TCO-focused. If the customer sees extra value, there is no hesitation in paying more,” Agarwal said, pointing to digitisation, AI-led service initiatives, reliability and turnaround time as key differentiators.

For Ashok Leyland, the strategy is clear with differentiated products, strong service, rising exports, EV readiness and a favourable domestic cycle, all converging as it prepares for the next phase of commercial vehicle growth.

Comments (0)

ADD COMMENT

Link Copied!

Piaggio Vehicles (PVPL), a subsidiary of the Piaggio Group, has secured an order for more than 100 units of its Ape Xtra Bada 700 cargo three-wheeler from HeidelbergCement India.

The three-wheelers will be deployed across 53 districts in Uttar Pradesh, Madhya Pradesh and Bihar. This order marks the entry of the new diesel cargo model into industrial applications.

The Ape Xtra Bada 700 features a 700 DI diesel engine, a 7-foot cargo deck and a payload capacity of 750 kg, which is the highest in the three-wheeler cargo segment. The vehicle is equipped with 12-inch radial tyres, a digital instrument cluster with a 3.5-inch LCD and an optional rear sensor for reversing.

The vehicle architecture includes a chassis and suspension geometry designed for stability and load distribution. The cabin is engineered for long-distance operation and the engine is tuned for torque and pickup. Piaggio offers a five-year warranty on the model. The company positions this three-wheeler as a replacement for entry-level four-wheeler small commercial vehicles (SCVs) due to its operating economics.

Amit Sagar, Executive Vice President, CV Domestic Business & Retail Finance, Piaggio Vehicles, said, “This flagship order from Heidelberg Cement India Limited is a strong validation of the Ape Xtra Bada 700’s disruptive capabilities. At Piaggio India, we have always believed in pushing the boundaries of innovation in the last-mile mobility segment. The Ape Xtra Bada 700 sets new industry benchmarks in engine capacity, deck size and payload, and is designed to empower customers with more productivity and superior earnings. Breaking into applications traditionally dominated by 4-wheeler SCV marks an important milestone in our journey of offering better TCO and profitability to our customers.”

Comments (0)

ADD COMMENT

Link Copied!

Tata Motors, one of the leading commercial vehicle manufacturers, has received orders for more than 5,000 buses and bus chassis from various State Transport Undertakings (STUs) across India. The company secured these orders through a competitive e-bidding process with deliveries scheduled to take place in phases according to agreements with the respective transport corporations.

The orders were placed by several organisations, including the Maharashtra State Road Transport Corporation (MSRTC), Gujarat State Road Transport Corporation (GSRTC) and the Telangana State Road Transport Corporation (TGSRTC), among others. The contract includes models such as the Tata Magna, Cityride and Starbus, as well as LPO 1618, 1622 and 1822 chassis variants. These vehicles are designed for intercity, long-haul and intracity operations.

The company's passenger vehicle portfolio includes vehicles ranging from 9-seater to 55-seater capacities. To support these fleets, Tata Motors provides Sampoorna Seva 2.0, a vehicle lifecycle management programme. This service includes maintenance, spare parts availability and breakdown assistance through a network of over 4,500 sales and service touchpoints.

Anand S, Vice-President and Head, Commercial Passenger Vehicle Business, Tata Motors, said, “This recognition by multiple State Transport Undertakings reflects the deep trust placed in Tata Motors’ mobility solutions. Our buses are designed to deliver comfort, safety and long‑term reliability across varied terrains and duty cycles. With strong product engineering and a lifecycle support ecosystem built around customer uptime, we continue to enable STUs to serve millions of passengers every day. These cumulative orders strengthen our position as the country’s preferred mobility partner and reinforce our commitment to shaping India’s public transport of tomorrow.”

Comments (0)

ADD COMMENT

Link Copied!

New-Delhi-based tech-driven logistics company Cargo Matters (Parmelee Cargo Matters Logistic Solutions) has signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to establish an integrated electric vehicle (EV) manufacturing and charging hub.

The project involves a total investment of INR 1 billion and focuses on the electrification of heavy commercial vehicles. The firm has submitted a Detailed Project Report (DPR) to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for 18 acres of land in Madanapalle.

The facility will include a manufacturing block for chargers, a retrofit facility for heavy vehicles, and a research and development unit for validation and certification. Half of the investment, amounting to INR 500 million, is designated for charging infrastructure to support regional heavy-duty corridors. Operations are expected to begin within 12 to 18 months, with full commissioning planned within 24 months.

The project is estimated to create 1,000 direct jobs and 3,000 indirect jobs in the region. Located near the borders of Karnataka and Tamil Nadu, the hub is situated 100 km from Bengaluru and 250 km from Chennai to facilitate logistics connectivity. The initiative aligns with the Andhra Pradesh Sustainable Electric Mobility Policy 4.0 (2024–2029).

Cargo Matters operates a fleet of more than 400 trucks across 15,000 pincodes and counts the likes of Tata Steel, DHL and Havells among its customers. The company uses data integration through the National ULIP to manage full truckload and less-than-truckload services.

The Madanapalle facility is intended to provide fleet owners with pathways to electrification through vehicle retrofitting and dedicated charging networks.

Umesh Padala, Founder & Chairman, Cargo Matters, said, "This MoU represents our commitment to practical decarbonization. While the passenger EV market is maturing, the heavy freight sector remains the final frontier. Our Madanapalle facility will provide fleet owners with a cost-effective pathway to electrification through advanced retrofitting and dedicated heavy-duty charging networks."

P N Mahesh, Director, APIIC, added, "As part of our commitment to building a green and future-ready logistics ecosystem, we are pleased that Cargo Matters has chosen Madanapalle for its upcoming hub. The project aligns with the Andhra Pradesh Sustainable Electric Mobility Policy 4.0 (2024–2029) and strengthens our ‘Green Freight’ vision. Strategically located near the borders of Karnataka and Tamil Nadu, with Bengaluru about 100 km away and Chennai around 250 km away, Madanapalle offers excellent connectivity for logistics operations. The initiative will generate nearly 1,000 direct and 3,000 indirect jobs, creating meaningful opportunities for the region’s youth."

Comments (0)

ADD COMMENT

Link Copied!

John Deere has introduced its 5M series, featuring the 130HP 5130M tractor, at the John Deere Power and Technology Show. The launch marks an expansion of the company’s high-horsepower offerings in the Indian market, where it has operated for over 27 years.

The 5130M model incorporates a front hitch and front power take-off (PTO) application, allowing for the simultaneous use of implements at the front and rear of the machine. This configuration is designed to improve field efficiency and reduce the number of passes required for crop operations.

John Deere showcased several digital and automated solutions aimed at precision farming. These technologies focus on resource optimisation and input cost reduction.

Key technology launches include:

• 5E AutoTrac: A vehicle guidance system designed for straight-row accuracy to reduce overlaps and gaps during tilling and seeding.
• GreenSystem Link: A factory-fitted connectivity kit providing data integration for machine monitoring.
• Radial Tyres: Standardisation of 100 percent radial tyres on the 5405 and 5075E models to reduce soil compaction and improve traction.

The company’s Indian operations serve as a hub for research and development, engineering, and global IT. John Deere currently exports products manufactured in India to 110 countries. The strategy involves adapting global innovations to local conditions while supporting government sustainability goals for 2047.

Rajesh Sinha, MD & Country Manager, John Deere India, said, “The core of John Deere’s strategy revolves around integration of precision agriculture, digital solutions for SMART connected machines that enable farmers to produce more with fewer resources. The recent technologies launched are designed to optimize field operations & input cost, precise crop care solutions ensuring soil and environmental sustainability. John Deere’s India footprint continues to be significant and important for global operation from the R&D, Engineering, Global IT, Supply chain, Road Construction beside manufacturing and talent.”

Ramakant Garg, Sales & Marketing India Director, added, “The advanced farm technologies and evolving agronomy practices go hand in hand and thus John Deere is committed to align these for futuristic agricultural practices. The Power and Technology 7.0 is a step in that direction. In the past John Deere has been leading technologically superior products for Indian markets and we take pride in continuing in do so in today’s technology event.”

Mukul Varshney, Region 1 Government Affairs Director, stated, “The government’s sustainability goal for 2047 can best be supported by John Deere that makes us even more responsible and accountable beyond products and services. We witness a very favourable ecosystem that helps us further our efforts to collaborate with stakeholders such as academia, research institutions and industry.”

Comments (0)

ADD COMMENT

Link Copied!